Speaking in the Dail, Tanaiste Frances Fitzgerald said: “Of course it is absolutely critical that those people who have paid their water charges, those who have been compliant, clearly should not be in any away disadvantaged going forward.

“We now have the committee who will consider the various options in relation to that.”

A special Oireachtas committee will look at the findings from the expert commission on water and Minister of State for European Affairs Dara Murphy said the party would follow its recommendations.

He said Mr Coveney’s preference was that those who had not paid would cough up, but if this was voted against, then refunds would have to be made.

He told Today with Sean O’Rourke: “Those who paid can’t have lost out.

"There is a clear view between Simon Coveney and us if we are not going to pursue the money, those who have paid have to have their money returned.”

Minister for Finance Michael Noonan (Photo: Collins Photo Agency)

Finance Minister Michael Noonan has revealed the money is there to refund the €144 million paid in water charges last year, after it emerged exchequer returns for November would be €280m above expectations.

He has publicly backed Minister Coveney’s stance, but warned the issue was a “dead cat” that was losing them seats.

However Social Protection Minister Leo Varadkar was staunchly opposed to refunds, saying “one way or another” people would have to pay.

Speaking today he said: “It’s going to be up to the committee to make recommendations as to what we do now - but certainly my own view is that they shouldn’t be refunded.

“The €140million that was paid went to Irish Water and went into our water network, and that’s where we need more investment - not less.

“And for those who didn’t pay, it’s an unpaid bill and an outstanding debt - just like an unpaid ESB bill or an unpaid management charge.

“And ultimately eventually, one way or another, people will end up having to pay that bill”.

A Fine Gael insider said: “The view held by a lot of members is that there’s little to gain from pursuing non-payers.

"It’s become a matter of pride for some, but the feeling is we will lose out in the long run.”